When should I start preparing? How long does the entire home buying process typically take?

Hello! Seeing your question feels like looking at my past self—totally confused and unsure where to start. Don’t worry; while it might seem complex, breaking it down step by step will make things clear. Based on my experience, I’ll outline the process below to help you out.

1. When Should I Start Preparing?

Honestly, the earlier, the better—but that doesn’t mean rushing to view properties immediately. Preparations span several areas, so plan according to your situation.

1. Financial Preparation (1–2 years in advance, or earlier)

This is the absolute core step. Without securing your finances, everything else is moot.

Saving for a Down Payment (頭金): While "zero-down" loans exist, I strongly recommend saving at least some down payment. Even 10% of the property price improves your loan eligibility and eases future repayment pressure.
Saving for Additional Fees (諸費用): A major oversight for beginners! Beyond the property price, buying a home incurs extra costs like agent fees, registration fees, stamp duty, and insurance—typically 6%–9% of the property price. For example, for a ¥30 million property, prepare ¥1.8–2.7 million in cash separate from your loan.
Maintain Stable Employment/Income: Banks prioritize job tenure and income stability. If planning a job change, settle into a role at least 1 year before applying (3+ years is ideal).

Summary: Financial prep is a long game. Start saving and planning 1–2 years ahead—it’s never too early.

2. Information & Knowledge Building (6 months–1 year in advance)

"Educate" yourself before actively house-hunting:

Define Your Needs: What type of home? Apartment (マンション) or standalone house (一戸建て)? New or used? Size? Commute time? Nail down these priorities first.
Research Market Trends: Browse Japanese real estate sites like SUUMO or Homes. "Window-shop" virtually to gauge prices in your target areas and understand market trends. This prevents being misled by agents.
Learn Key Terms: Grasp basics like "tsubo" (坪), "square meters," and "LDK" to navigate listings confidently.

Summary: Treat this as "prep work"—it’s free and prevents overwhelm later.

3. Credit & Loan Prep (3–6 months in advance)

Once finances and market knowledge are in place, focus on loans:

Maintain Good Credit: Ensure no late credit card, utility, or phone payments. Avoid large debts (e.g., car loans), as these reduce borrowing capacity.
Apply for Loan Pre-Approval (仮審査): When you find promising properties, ask banks/agents for a pre-approval. This estimates your loan eligibility, clarifying your budget and streamlining your search.

Overall Timeline: Ideally, start planning ~1 year out (finances + research). 3–6 months before buying, contact agents for pre-approval and begin viewing properties.

2. How Long Does the Entire Process Take?

From finding your ideal home to getting the keys, a smooth process takes 2–3 months. Here’s the breakdown:

Step 1: Viewing & Purchase Application (Viewing time varies; ~1 week post-application)

Property Viewing (内見): Highly variable—some decide after 1–2 viewings; others take months.
Purchase Offer (購入申込書): Submit an offer (including your proposed price—negotiate!) via the agent. Seller response typically takes days to a week.

Step 2: Loan Pre-Approval & Sales Contract (~1–2 weeks)

Loan Pre-Approval (仮審査): If not done earlier, complete now (takes 3–7 days).
Important Matters Explanation (重要事項説明): A licensed specialist (宅建士) details legal/structural aspects of the property (1–2 hours). Listen carefully!
Sign Sales Contract (売買契約): After confirming details, sign the contract and pay a deposit (手付金), usually 5%–10% of the price.

Step 3: Formal Loan Application (~2–4 weeks)

Formal Loan Screening (本審査): Submit your contract to the bank for rigorous checks. The most nerve-wracking phase—takes 2 weeks to 1 month.

Step 4: Transfer & Handover (~1–2 weeks)

Loan Agreement (金消契約): Sign loan documents upon approval.
Final Settlement (決済): The big day! Meet at the bank with the agent, seller, and judicial scrivener (司法書士). Here:
1. The bank transfers your loan + down payment to the seller.
2. You pay remaining fees (agent fees, etc.).
3. The scrivener registers the property under your name at the Legal Affairs Bureau.
4. You receive the keys!

Total Timeline:

House Hunting (1–3+ months) → Application (1 week) → Sales Contract (1–2 weeks) → Loan Approval (2–4 weeks) → Settlement (1–2 weeks)

From application to handover, expect ~2 months minimum. Delays (e.g., loan issues) can extend this to 3–4 months.

Hope this detailed guide helps! Buying a home is a major step—take your time, prepare thoroughly, and things will fall into place. Wishing you success in finding your dream home!